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How to Use Email Marketing to Segment Customers and Generate Loyalty
Posted By Ivana Taylor On April 30, 2014 @ 10:30 am In Marketing Tips | 7 Comments
You may have heard the saying “the money is in the list” and I’m willing to bet that the first place your mind went is to thinking that a bigger list is better. While this is mostly true, it isn’t completely true. Having a bigger list will definitely yield results, but it’s the engagement level of your list; the degree to which they do what you ask them to do – that is even more important and profitable.
This is where so many of us (that includes me and many of the gurus of email marketing) are always looking for ways to get close to our list, provide real value and generate engagement, conversation and conversion.
Without a doubt, the single best way to accomplish this is to segment customers.
Segmentation literally means grouping. When you group your list into categories that represent the subjects that your audience is most interested in.
Imagine walking into a room full of people who are your potential customers. Chances are that all of those people aren’t sitting in one big group. They are grouped into smaller clusters having specific conversations. You wouldn’t walk up to a group talking about football and suddenly start talking about gourmet cooking.
Every time you send a mass email to a broad group of people on your list – your are doing exactly that. You are talking about what matters to you instead of what matters to them.
Let me explain. When you segment customers and group your list into specific segments, this allows you to target your communications and conversations around topics that are meaningful to them.
Research shows that targeted and segmented emails generate an 8% click-through rate compared to general email sends, which generate just a 3% click-through rate. Furthermore, Jupiter Research reveals that relevant emails drive 18 times more revenue than broadcast emails.
If you’re just starting on the path to segment customers on your email list, then there are several options that you can try:
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